AbstractTourism is now the world's largest industry, generating earnings of £285 billion/annum. In recent years, the tourism sector has become a significant contributor to the wealth of the UK and represents about 7% of the workforce. Greater mobility and more leisure time has led to greater car use, many more short‐term movements of people, and increasing pressure on the transport infrastructure. Consequently, there is real concern about the effect of increased tourist activity on the environment and how the challenge of sustainable tourism can be achieved. This paper examines how the tourism industry is addressing that challenge by balancing the benefits of tourist activity without compromising the environment. In Wales, the Wales Tourist Board is committed to sustainable tourism, and its approach is offered as an example of achievement and how conflicting demands can be resolved.